When real property accounts become seriously past due, the County may initiate a foreclosure proceeding. A Common Law Lien is a solution to lien property that the bank is trying to foreclose on. This allows the homeowner facing foreclosure to protect assets. Foreclosure happens when a borrower fails to pay their mortgage payments and the lender or mortgage investor must repossess the home.
Foreclosure is a legal process and varies from state to state. If you lose the foreclosure action or a default judgment is entered, the sheriff will issue notice of sale and sell your house at a public sale. In order to prevent a foreclosure sale from moving forward while the case is on appeal, a borrower or property owner must pay a bond to the clerk of superior court.
Few people enter into a loan agreement expecting to default on it. However, there are a number of reasons a homeowner may fail to make their payments. The opening bidder is the bank, other lender (mortgagee), or attorney representing the mortgagee. At the auction, the home is sold to the highest bidder for cash payment.
If your reason why you were unable to pay your mortgage is that your monthly payment has just gone higher, then it is time to consider refinancing. A foreclosure can add to your financial problems if your state allows a deficiency judgment, which means the borrower owes the difference between what is owed on the foreclosed property and the amount it eventually sells for at an auction.
A trust deed is a special type of mortgage given by the owner of the real property to a third party, called a trustee, who holds a power of sale for the property for the benefit of a creditor (such as a lender) until the debt is repaid. Unless the gavel has been dropped in a courtroom and a Judge proclaims your house must be returned to the bank, you still have options.